 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16408 / January 14, 2000
United
States v. John Lauer, et al., (N.D. Ill., Case
No. 99 CR 0874, Filed November 17, 1999)
The
Securities and Exchange Commission (Commission)
and the United States Attorney for the Northern
District Of Illinois (U.S. Attorney) announce
the filing of a three count criminal information
against John D. Lauer (Lauer) of Chicago, Illinois
for among other things engaging in acts which
violated a prior Commission injunction. Lauer,
the former director of risk management for the
Chicago Housing Authority (CHA), had previously
been enjoined by the Commission on October 24,
1995, for investing more than $14 million of CHA
pension funds in fictitious "prime-bank"
instruments in exchange for more than $4 million
dollars in undisclosed payments made to him and
companies he controlled by the promoters of the
prime-bank note program. Also in October 1995,
the U.S. Attorney convicted Lauer for mail fraud,
wire fraud and obstructing the Commission's investigation
relating to the CHA fraud.
The
current information, charges Lauer with two counts
of mail fraud and one count of wire fraud for
engaging in three additional schemes to defraud
pending the beginning of his criminal sentence
for his prior scheme. Specifically, Lauer is alleged
to have solicited investors to invest in a purported
paint coating equipment reselling business by
misrepresenting and omitting to state material
facts regarding, among other things, his use of
investor funds to pay other investors and his
own personal and business expenses. Lauer is also
alleged to have solicited investors to invest
in a business whose purpose was purportedly to
manufacture ceramic mugs and clocks while misrepresenting
and omitting to state material facts regarding
the risks and returns associated with the investment.
Finally, Lauer is alleged to have defrauded the
owner of a $635,000 lake front home and others
by misrepresenting his ability to pay for the
property, obtaining a loan for the earnest money
deposit under false pretenses and paying for personal
property associated with the home with a check
he knew to be drawn on an account with insufficient
funds.
Lauer
is currently serving a 38 month prison term for
his prior conviction. On November 30, 1999, Lauer
pleaded guilty to the acts alleged in the information
and is scheduled to be resentenced for his original
crimes, his new activity and his violation of
the Commission's injunction.
from: http://www.sec.gov/litigation/litreleases/lr16408.htm
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